Competency and Compensation

A large part of sustainable growth for contractors is being able to effectively leverage people with a narrower set of skills to still deliver the same level of value-add to the customer.

D. Brown Management Profile Picture
Share

This support structure is called “Enabling Bureaucracy” and is a combination of management time, control systems, QA/QC, workflows, training, etc.

Leadership Tools: Graph representing Value-Add and Compensation with Quantity of people in the workforce, ability to manage ambiguity, and skill level and execution.

As contractors grow they need to refine their organizational structures, workflows, job descriptions  and their talent processes to support this growth.

These support structures must be built over time and integrated with the contractor’s growth strategy.  Once effectively in place these support structures will produce a more scalable organization that can actually deliver the same value-add to the customer at a lower total cost providing a competitive advantage. 

These systems are slow, painful and costly to put into place.  The recruiting focus of a contractor must be in alignment with the levels of support structures they have in place.  Netflix defines this quite well in their culture slide deck and book.  

Are your support structure capabilities and recruiting in alignment?  

If not there will be excessive stress on the team combined with lower profitability.  This just means you are at one of the inflection points on the business growth cycle.




Words of Wisdom for Leading Growth
Develop a clear market strategy and set guiding principles that creates value for your customers and your business. Nurture and promote those on your team that take initiative to aggressively execute strategy while relentlessly following up on details.
Selling an Efficient Project
Doubling the pretax net margin for contractors requires both effective selling AND operational excellence. The majority of of people in construction contracting businesses are operationally focused on building the work.
Ownership Transition - Key Seller Risks
Whether you are buying or selling a construction business, it is important to understand the perspectives of the other party. Each will tend to discount the risks of the other, impacting the ability to create the best deal.